The government has introduced four new labour codes that combine several earlier central labour laws into one framework. These four codes are: the Code on Wages (2019), the Industrial Relations Code (2020), the Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020). This marks a major shift from the previous arrangement of having many separate laws for different issues. Code on Wages (2019) has come with the repealing of the existing four labour laws namely, Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, and Equal Remuneration Act, 1976.The Code on Wages sets the rules for minimum wages. It extends minimum-wage coverage to all workers, instead of limiting it to scheduled employment as earlier. It introduces a national floor wage to be fixed by the Union government and states cannot set their rates below this level. Under the Code, minimum wages must be decided on the basis of skill level, the kind of work, the difficulty of the work and whether the area is metropolitan, non-metropolitan or rural. The code further states that these wages should be revised within a period not exceeding five years. These new codes are presented as measures that will strengthen worker protection, but the coverage is not as complete as it appears. The minimum-wage provisions apply only to employees working in what the law recognises as an “establishment”. Since the Code defines an establishment as a place where industry, trade, business or manufacturing takes place, a large share of home-based work and much of small-scale agriculture does not clearly fall within this definition. Many home-based workers operate through layers of sub-contracting and do not have a direct employer–employee relationship. The same issue appears in family-run enterprise or farm work. Because the Code relies on the presence of a clearly defined employer and establishment, these workers may still remain outside the minimum-wage coverage.The Code also removes the earlier practice of fixing separate minimum wages for each occupation. Under the old system, different trades had their own wage rates, which helped reflect the specific skill, effort and risks involved in each kind of work. This approach was based on the idea that in a largely unorganised labour market, occupational wage rates act as a substitute for collective bargaining and offer some protection to workers who lack the union strength to negotiate on their own.The new law replaces this with a simpler structure based on three areas (metropolitan, non-metropolitan and rural) and four skill levels. This kind of simplification may help raise awareness among workers, make implementation easier and improve compliance. However, it also raises two concerns. First, it weakens the limited bargaining space that workers had. With the new structure, wage fixation depends mostly on government notifications, leaving workers and unions with little room to influence rates that match the reality of their occupations. Second, broad categories may not capture differences across industries and regions, and states may choose wage rates at the lower end of each band.The problem of enforcementEnforcement is an important part of any minimum wage system, and this is where the Code raises some concerns. The earlier system allowed labour inspectors to visit workplaces, check wage records and verify whether workers were being paid correctly. Under the new law, this has been replaced with web-based inspections and self-certification, where employers declare their own compliance. The inspector’s role has also been changed to “inspector-cum-facilitator,” which places more emphasis on guidance than on checking violations. Although penalties have been increased, informal and non-unionised workers may still find it difficult to take wage disputes forward through formal channels. In a labour market where most workers are informal and union presence is limited, effective enforcement becomes essential for the law to work on the ground. The Code expands coverage and simplifies wage categories, but its enforcement framework may not be strong enough to ensure that workers actually receive the wages promised under the law.Labour unions across the country have been protesting against the new labour codes, mainly on the ground that the changes do not go far enough in protecting workers. The experience of minimum wages in India shows that the state has an important role in creating the space for workers to bargain and in making sure that the law is enforced. Expanding coverage alone does not guarantee protection if enforcement remains weak. The Code has widened the legal coverage, but it has not strengthened the enforcement system, and there is still uncertainty about how minimum wage levels will be fixed and revised. These gaps will need closer attention if the new wage framework is to work in practice and improve the earnings and bargaining power of workers.Kashif Mansoor works at National Centre for Good Governance, New-Delhi and has a PhD on Minimum Wage Determination, Enforcement and Compliance in India. Basit Abdullah teaches at Institute of Management Technology, Hyderabad.